Where to Go for Lowest State Taxes?

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Where to Go for Lowest State Taxes?
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Where to Go for Lowest State Taxes?
One can't avoid paying taxes, but the place a person calls home can make a big difference in the year-end tax bill.

Each year, the Tax Foundation, a nonprofit policy research group, ranks each of the 50 states and Washington, D.C., according to the state and local tax burden borne by residents of those areas.
Rank: No. 1
Tax Burden: 6.6% of income

Alaska residents pay the lowest state taxes. They do not pay state income or sales tax. They even get tax refunds from the government because of the excess revenue it collects from companies extracting oil from the state.
Rank: No. 2
Tax Burden: 8% of income

No personal income tax gives New Hampshire residents low state taxes.
Rank: No. 3
Tax Burden: 8.5% of income

Tennessee residents pay some of the lowest state taxes because they only owe income tax on dividends and interest.
Rank: No. 4
Tax Burden: 8.8% of income

No sales tax is another policy that gives Delaware residents some of the lowest state taxes in the country.
Rank: No. 5
Tax Burden: 8.8% of income

Alabama is an especially tax-friendly place for seniors, offering retirees nice tax breaks that add up to low state taxes.
Rank: No. 6
Tax Burden: 9% of income

The highest state income tax rate for Oklahoma, 6.25%, is actually among the lowest state taxes paid across the nation.
Rank: No. 7
Tax Burden: 9% of income

Those looking for low state taxes should target places like South Dakota that do not charge personal income tax.
Rank: No. 8
Tax Burden: 9.3% of income

Tax-friendly places such as Texas may have one of the highest sales tax rates in the country, but does not charge a personal income tax. So residents who spend less (or have less to spend) will shoulder less of the tax burden.
Rank: No. 9
Tax Burden: 9.5% of income

For low state taxes turn to Wyoming, which not only lacks state income tax, but its sales tax rate is below average at 5%.
Rank: No. 10
Tax Burden: 9.7% of income

Shop 'til you drop in Montana and still pay lowest state taxes, since there is no sales tax charged in this state.
Among the list for lowest state taxes, more tax-friendly (or not so friendly) places include:

Tax-Friendly Cities
No Income Tax Here
No Sales Tax
Retiree Tax Breaks
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